COMMODITIES
Gold hits six-week high
Gold advanced for a fifth day to the highest level in more than six weeks on signs the Federal Reserve may delay an interest rate increase as inflation remains low and the selloff in emerging markets spreads. Gold for immediate delivery climbed as much as 1.4 percent to US$1,168.39 an ounce, the highest level since July 7, before trading at US$1,158.75 by 2:57pm in Singapore, according to Bloomberg generic pricing. The metal has surged 3.9 percent this week and is set for the biggest such gain since January. Fed officials showed concern over low inflation, according to the minutes of last month’s meeting, signaling a possible rate increase in December instead of next month. China’s decision to devalue amid slower growth and prospects for higher US interest rates have spurred selling across emerging markets and commodities.
ECONOMY
Eurozone gains momentum
The eurozone economy picked up momentum this month, with an improvement in Germany lifting a business index to close to its highest level in four years. Markit Economics said yesterday that its composite Purchasing Managers’ Index of manufacturing and services rose to 54.1 from 53.9 last month, close to the four-year high reached in June. That is above the 50 mark that divides expansion from contraction and compares with a median estimate of 53.7 in a Bloomberg survey of economists. The increase was partly led by Germany, the region’s largest economy, where a factory index rose to the highest level in more than a year. That offset “disappointing” numbers in France, where manufacturing shrank for a second month.
STOCK MARKET
Samsung eyes NASDAQ
South Korea’s dominant Samsung conglomerate is to make its first entry into US stock markets next year with the listing of a biotechnology affiliate, a company official said yesterday. The listing of Samsung Bioepis on the NASDAQ Stock Market is aimed at securing funds for investment in the field of biosimilars — a new breed of drugs that mimic the effects of biologic drugs made from living cells. “With an underwriter already designated, preparations are under way for the public stock listing of Bioepis in the first half of next year,” a Samsung official said. Bioepis are to be the first Samsung affiliate to list in the US. Samsung Electronics controls 46 percent of Samsung BioLogics, which in turn holds 90 percent of Bioepis. The Samsung group is already remarkably diverse, with interests ranging from electronics to construction and shipbuilding and sees biotechnology as a revenue growth engine for the future.
ECONOMY
Seoul sees spending slump
South Koreans spent less of their incomes on shopping, leisure and bills last quarter, underscoring the challenge the government faces in boosting domestic demand. Household spending as a percentage of disposable income, excluding items like tax and pensions, fell to 71.6 percent in April-June from 72.3 percent in the first three months of the year, the statistics office said in a statement yesterday. With exports dropping every month this year, South Korea is relying on a revival in consumption to support its economy. The decline in the consumption rate comes after the central bank cut interest rates four times in the past year to a record low of 1.5 percent and the government introduced its largest-ever budget this year.
MULTIFACETED: A task force has analyzed possible scenarios and created responses to assist domestic industries in dealing with US tariffs, the economics minister said The Executive Yuan is tomorrow to announce countermeasures to US President Donald Trump’s planned reciprocal tariffs, although the details of the plan would not be made public until Monday next week, Minister of Economic Affairs J.W. Kuo (郭智輝) said yesterday. The Cabinet established an economic and trade task force in November last year to deal with US trade and tariff related issues, Kuo told reporters outside the legislature in Taipei. The task force has been analyzing and evaluating all kinds of scenarios to identify suitable responses and determine how best to assist domestic industries in managing the effects of Trump’s tariffs, he
TIGHT-LIPPED: UMC said it had no merger plans at the moment, after Nikkei Asia reported that the firm and GlobalFoundries were considering restarting merger talks United Microelectronics Corp (UMC, 聯電), the world’s No. 4 contract chipmaker, yesterday launched a new US$5 billion 12-inch chip factory in Singapore as part of its latest effort to diversify its manufacturing footprint amid growing geopolitical risks. The new factory, adjacent to UMC’s existing Singapore fab in the Pasir Res Wafer Fab Park, is scheduled to enter volume production next year, utilizing mature 22-nanometer and 28-nanometer process technologies, UMC said in a statement. The company plans to invest US$5 billion during the first phase of the new fab, which would have an installed capacity of 30,000 12-inch wafers per month, it said. The
Taiwan’s official purchasing managers’ index (PMI) last month rose 0.2 percentage points to 54.2, in a second consecutive month of expansion, thanks to front-loading demand intended to avoid potential US tariff hikes, the Chung-Hua Institution for Economic Research (CIER, 中華經濟研究院) said yesterday. While short-term demand appeared robust, uncertainties rose due to US President Donald Trump’s unpredictable trade policy, CIER president Lien Hsien-ming (連賢明) told a news conference in Taipei. Taiwan’s economy this year would be characterized by high-level fluctuations and the volatility would be wilder than most expect, Lien said Demand for electronics, particularly semiconductors, continues to benefit from US technology giants’ effort
‘SWASTICAR’: Tesla CEO Elon Musk’s close association with Donald Trump has prompted opponents to brand him a ‘Nazi’ and resulted in a dramatic drop in sales Demonstrators descended on Tesla Inc dealerships across the US, and in Europe and Canada on Saturday to protest company chief Elon Musk, who has amassed extraordinary power as a top adviser to US President Donald Trump. Waving signs with messages such as “Musk is stealing our money” and “Reclaim our country,” the protests largely took place peacefully following fiery episodes of vandalism on Tesla vehicles, dealerships and other facilities in recent weeks that US officials have denounced as terrorism. Hundreds rallied on Saturday outside the Tesla dealership in Manhattan. Some blasted Musk, the world’s richest man, while others demanded the shuttering of his
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